Overview and tentative results of the HyUnder project Ulrich Bünger, German Case Study Coordinator, Ludwig-Bölkow-Systemtechnik Joint NOW GmbH – FCH JU Water Electrolysis Day 3 April 2014, White Atrium, Avenue de la Toison d’Or 56-60, 1060 Brussels, Belgium      HyUnder, Assessment of the potential, the actors and relevant business cases for large scale and seasonal storage of renewable electricity by hydrogen underground storage in Europe (www.hyunder.eu ) Duration 24 months, from 18/06/2012 to 17/06/2014 Budget: 1.766.516 € / Funding: 1.193.273 € 12 project partners from 7 countries (DE, FR, UK, ES, NL, RO, BE): 3 large industry, 7 institutes/consultants, 2 SMEs. 17 supporting partners 9 from energy sector (TSO, DSO, gas, electricity…), 5 other industry (chemical, gases, automotive) 3 regional authorities Hydrogen storage as part of energy chain ------------------------------------------------------------------- Rationale ------------------------------------------------------------------- Why storing large scale intermittent renewable energies with hydrogen? • Increasing fluctuating renewable energy in the long run  need for electricity storage to ensure network reliability and flexibility. • Large scale underground gas storage: relatively mature solution • Thorough evaluation of hydrogen underground storage needed from a technical, economic and societal standpoint, providing understanding of: ‒ ‒ ‒ ‒ potential economic returns for investors; technical attractiveness for network operators and energy producers; potentially addressable markets for technology developers; benefits for the society as a whole, and how environmental risks are being evaluated and addressed for policy makers and citizens. Approach and methodology 1/2 ------------------------------------------------------------------WP1 Project coordination, administration & reporting Project coordinator FHa WP4 European mapping Of H2 underground storage WP5 Above- and belowground plant technologies LBST KBB DEEP Shell WP6 Representative Case Studies D, E, F, NL, RO, UK LBST, FHa, Hinicio/CEA, ECN, NHFCC, CENEX WP8 Executive summary report LBST, all “Toolbox” Hinicio WP3 Geologic options for H2 underground storage WP7 Dissemination, improve stakeholder awareness WP2 Benchmarking H2 underground storage Approach and methodology 2/2 ------------------------------------------------------------------Mixed Regional /European perspective: • Development of individual Case Studies on H2 underground storage for Germany, Spain, the UK, Romania, France and the Netherlands, all based on a common methodology: ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒ Compare H2- vs other storage concepts/technologies. Regional storage prototype location analysis. Identification of ideal geological storage options. Assessment of plant technologies. Economic scenario assessment (static/dynamic). Introduction of hydrogen into different markets. Sensitivity analysis based on scenario assumptions. Comparison of individual Case Study results. • Synthesize into one EU Action Plan / Roadmap. Source: KBB Energy storage needs EU (100% REN) • Assumption: 100% renewable energy power system • 1,300 GW wind, 830 GW PV, 50% of “excess” generation assumed • Storage for “excess” capacity: • • ca. 12 – 15% of annual EU electricity consumption (2007) corresponding to 400 – 480 TWh (60% wind, 40% PV) • H2 storage need of 50 TWh (220 GW) of energy capacity (discharge power) @ 60% hydrogen cavern cycle efficiency, H2out/H2in • Beyond EU capacity of pumped hydro and compressed air energy storage! • Theoretic comparison with large H2-cavern field (8x106 m3) capacity (scaling): • • NOV-12 H2-storage capacity 1.3 TWhH2, discharge power 2.6 GW 85 cavern fields Sources: Greiner, M., et al.; Crotogino, F. et al. – 9th World Salt Symposium; VDE 2008 Potential H2 demand German Case Study • Industry is largest H2 user today, shift to renewable hydrogen will depend on H2 costs • Transport sector may follow close in the future with best business potentials, but why build a large cavern at initially los costs? • Following economic assessment, extensive use for re-electrification and use in natural gas grid most questionable • On the other hand, scaling against hydrogen from surplus electricity (3001,600 kt/a), the transport sector alone could use up all hydrogen provided by 2050 (1,700 kt/a, @50% fleet share) NOV-12 Analysis of underground salt structures ------------------------------------------------------------------- Source: DEEP Underground Engineering GmbH Storage potential for hydrogen across Europe ------------------------------------------------------------------- Source: DEEP Underground Engineering GmbH • Working hypothesis is that salt caverns are the most reasonable underground storage technology • Ample hydrogen storage potentials in salt caverns exist at large scale across Europe, but with regional focus Plant technologies ------------------------------------------------------------------Belowground technology typically comprises: • • • Storage cavern (development, O&M) Piping Safety devices Aboveground technology typically comprises: • • • • • • • • Electrolysis Compressors Purification and drying Heat exchangers System controls Safety devices Storage means (i.e. buffering purposes) Hydrogen turbines Source: Shell Global Solutions Dimensioning of H2 facility German Case Study ------------------------------------------------------------------- Generic economic modeling approach ------------------------------------------------------------------- Source: Ludwig-Bölkow-Systemtechnik GmbH Generic electrolyser operation scheme ------------------------------------------------------------------- Source: Ludwig-Bölkow-Systemtechnik GmbH Tentative results – German Case Study ------------------------------------------------------------------- • In short-term only transport sector could generate business cases Hydrogen production costs versus expected sales price €/kgH2 CAPEX OPEX Expected sales price Electricity 7 6 Negative margin 5 H2 delivery costs Positive margin 4 2,17 2,16 2,49 2,57 2,17 0,57 1,97 1,95 0,70 0,67 2,24 0,56 Expected H2 sales price 3 2 0,61 0,58 0,59 3,33 0,62 3,32 1 1,92 1,84 Mobility Industry 2,25 2,17 1,98 Mobility Industry NG grid 1,83 0 2025 NG grid Electricity 2050 Electricity Strongly depending on individual assumptions. Here e.g. electricity price from EEX. Tentative conclusions from Case Studies ------------------------------------------------------------------• • • • • • Renewable electricity surplus could be basis for H2-storage at large scale in long-term. H2 underground storage technically feasible for large-scale storage of renewable electricity. Geological conditions and locations for salt caverns good but regionally limited, some excellent. Existing natural gas storage sites available and preferred initially. Electrolysis dominates total costs of H2 storage facility (> 80% @ 50% utilization). H2 storage at large scale commercially very challenging; only transport sector and possibly industry applications offering short- to medium-term commercial perspectives. • H2 production from electrolysis and underground storage apparently need pull from mobility sector, otherwise unlikely to be implemented widely. • Sensitivity analysis suggests that – not all options have been understood for electricity sector (energy balancing services not fully considered), mostly depending on electricity market development and – smaller cavern size for transition phase has negligible effect on cavern costs. Mismatch between common sense based insight that large scale H2-for-electricity storage is indispensable and missing business case perspective from modelling. Better understanding of future energy markets needs to be developed. Expectations ------------------------------------------------------------------- Project Future Perspectives • Opportunities for increasing cooperation and for building alliances: strengthen the relationship of the energy sector with the (smaller) hydrogen community. Opportunities for a European approach may arise. • Opportunities for international collaboration: the project has already attracted the attention of non European companies, which contribute and cooperate by information exchange. • Opportunity to contribute to the future FCH JU Programme: the project effectively paves the way for a real demonstration in underground storage. Contact: Project coordination: [email protected] German Case Study: [email protected]